Materion Corporation

Materion Corporation reported record second-quarter results and raised its full-year guidance, driven by strong demand in aerospace, defense, semiconductor, and space markets. Value-added sales rose 15% to $308.2 million, adjusted EPS increased 39% to $1.90, and adjusted EBITDA margin reached a record 23.3%. The company now expects mid-teens percentage sales growth for 2026 and raised its adjusted EPS guidance to a range of $6.80 to $7.20, up from $6.00 to $6.50 previously. Backlog reached a record level, up approximately 30% year over year, and incoming orders grew nearly 30% in the first half, with defense order activity at $90 million year-to-date and over $500 million in open requests for quotes.

Materion declared a quarterly cash dividend of $0.145 per share, in line with the previous payout. The dividend is payable on September 4 to shareholders of record as of August 20, with the ex-dividend date also set for August 20. The forward yield stands at 0.24 percent. This marks the second consecutive quarter that the company has announced a dividend of $0.145.

Materion shares ended the last trading session 4.2% higher at $274.98 on impressive volume. The gain follows upbeat first-quarter results driven by double-digit growth across most end markets and improved operational performance. The company expects solid fiscal 2026 performance with low double-digit top-line growth and maintained its adjusted EPS guidance of $6.00 to $6.50, expressing growing confidence in hitting the upper end. Materion also announced its 14th consecutive annual dividend increase. The stock currently carries a Zacks Rank of 2, or Buy.